TEXAS UNIV AT AUSTIN CENTER FOR CYBERNETIC STUDIES
Dummy 0, 1 variables are frequently used in statistical modeling to represent the effect of certain extraneous factors. This paper presents a special purpose linear programming algorithm for obtaining least-absolute-value estimators in a linear model with dummy variables. The algorithm employs a compact basis inverse procedure and incorporates the advanced basis exchange techniques available in specialized algorithms for the general linear least-absolute-value problem. Computational results with a computer code version of the algorithm are given. Author
Prepared in cooperation with Oak Ridge Associated Univ., Oak Ridge, TN.